And you thought Manhattan's retail market was struggling. Fifth Avenue in the 50s is doing just fine thanks to tourists with foreign currency to blow on discounted American goods. The former Brooks Brothers store at 666 Fifth Avenue is now up for grabs and five major chains are currently vying to take over the space (which costs $30 million a year to rent): Uniqlo, Topshop, Zara, Century 21, and Forever 21. So instead of sneering at the next camera-toting German couple who bumps into you on Fifth, thank them for their patronage and move along, okay? [NYP]

• Karl Lagerfeld on the recession: "Bling is over. Red carpety covered with rhinestones is out. I call it 'the new modesty.' " Of course, said recession isn't affecting Karl personally, who says he has "no budget" and that "throwing money out the window brings money back in through the front door." [NYT]
• Saks is laying off 9% of its workforce. [WWD]
• A clip from The September Issue, the new Vogue documentary, is online. [Fashionista]
• Roberto Cavalli is selling a stake in his company. [FWD]
• The Forever 21 that turned into a Century 21 is a Forever 21 again. [Racked]
• Designers are scrambling to dress inauguration-goers, not that most residents of Washington seem to be terribly interested. [NYT]

• Valentino didn't lose money in a giant Ponzi scheme. He did, however, just lose $39 million to the government of Italy. [NYM]
• Neiman Marcus is laying off 375 staffers. [WWD]
• That giant Forever 21 in Times Square? It's actually going to be a Century 21. [Reuters]
• Disney and Sephora have lots in common. [NYT]
• Liz Claiborne is expected to report big losses for the fourth quarter. Isaac to the rescue! [WSJ]
• Alas, no bar is planned for Topshop. [Racked]
• Annie Leibovitz was spotted at the Hay-Adams in DC yesterday, suggesting Michelle Obama could be on the cover of March's Vogue. [Politico, via]